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Tag Archives: car insurance fraud

Auto insurance fraud is becoming a great problem in the United States. Auto insurance agencies are paying billions of dollars each year to cover them, that leads to increased premiums even for those who didn’t commit fraud.

Auto insurance fraud is committed against an insurance company in order to receive financial gain. According to the National Insurance Crime Prevention bureau auto insurance fraud costs Americans $20 to $30 billion annually.

Auto insurance fraud can be “hard” if it consists of an intentional set up of a situation such as car theft or an automobile accident. Soft insurance fraud is regarded as a minor offense, when a person takes advantage of a situation that has already occurred by pretending that the injuries were more serious that they actually were.